Arkade Developers IPO: A Strong Investment Opportunity in Mumbai’s Real Estate Market

Arkade Developers IPO Set to Raise ₹410 Crores

• ₹410 Crore IPO Target: Arkade Developers aims to raise ₹410 crores through its IPO, with shares priced between ₹121 and ₹128 each.
• Impressive Financial Growth: The company’s 2024 revenue surged to ₹635.71 crores, with profits doubling to ₹122.81 crores from the previous year.
• Expanding Project Portfolio: Arkade Developers has completed 27 projects and is actively working on five ongoing and two upcoming developments, covering over 2 million sq ft.

BILKULONLINE

Ahmedabad, Sep 12: Arkade Developers Limited, one of Mumbai’s leading real estate firms, is gearing up for its Initial Public Offering (IPO) with a targeted raise of ₹410 crores. The IPO will open on September 16, 2024, and close on September 19, 2024. Arkade Developers’ IPO is a Book Built Issue, comprising a fresh issue of ₹410 crores. The company’s shares will list on both the BSE and NSE on September 24, 2024.

IPO Structure and Details

The IPO is priced in the range of ₹121 to ₹128 per share, with a face value of ₹10 per equity share. The issue is categorized with a retail quota of 35%, QIB (Qualified Institutional Buyers) at 50%, and HNI (High Net-worth Individuals) at 15%. The allotment date is set for September 20, 2024.

Financial Performance and Growth

Arkade Developers has witnessed strong financial growth over the past year. In 2024, the company reported a revenue of ₹635.71 crores, a significant increase from ₹224.01 crores in 2023. This marks an impressive 183.84% revenue growth year-over-year. Similarly, profits surged to ₹122.81 crores in 2024 from ₹50.77 crores in 2023, reflecting the company’s consistent financial health.

Ongoing and Completed Projects

Arkade Developers has built a reputation for delivering high-quality projects in the Mumbai region. As of 2024, the company has successfully completed 27 projects, covering over 4 million sq ft of development and serving more than 4,000 customers. Their flagship developments include Arkade Nest, Arkade Prime, Arkade Crown, Arkade Aspire, and Arkade Aura. Currently, the company is working on five ongoing projects and has two upcoming projects, adding another 2 million sq ft to its portfolio.

Objects of the Issue

The funds raised from the IPO will primarily be used for:

Development Expenses for ongoing projects such as Arkade Nest, Prachi CHSL, and C-Unit.
Funding Acquisition of land for future real estate projects.
General corporate purposes, ensuring sustained growth and expansion.
Management and Promoters

The promoters of Arkade Developers are led by Amit Mangilal Jain, whose visionary leadership has played a pivotal role in the company’s growth. The company’s success is largely attributed to its strong focus on customer satisfaction and brand recognition.

According to a senior executive from the company, “Arkade Developers is not just about building homes; it’s about creating communities. Our goal is to continue delivering projects that meet and exceed the expectations of our customers, while also contributing to the growth of Mumbai’s real estate landscape.”

IPO Lead Managers

The IPO will be managed by Unistone Capital Private Limited, serving as the merchant banker for the issue.

Investor Outlook

The company’s strong financial performance, coupled with its aggressive expansion plans, makes it an attractive option for long-term investors. Analysts have noted the significant profit growth and revenue increases as positive indicators for potential investors. As one financial expert stated, “Given Arkade Developers’ steady growth and project pipeline, this IPO offers a promising opportunity for those looking to invest in a company with a solid track record in the real estate sector.”

With a solid foundation, a history of successful project completions, and a strategic plan for future growth, Arkade Developers is well-positioned to attract investors. The upcoming IPO, backed by strong financials and a reputation for excellence in real estate, promises to further enhance the company’s market presence and provide value to its stakeholders.

Amit Mangilal Jain, Chairman and MD, Ruben Chheda – Head of Sales and Marketing, Samshet Shetye – Chief Financial Officer and Prakash Kotecha from Unistone Capital Pvt Ltd were in Ahmedabad on Wednesday to interact with the media.

(Disclaimer: Investors must thoroughly study the company profile and details before investing)